A Company That Has a Beta Much Greater Than 1

question 117

Multiple Choice

A company that has a Beta much greater than 1 is said to have

• A)about the same risk of the market.
• B)more risk than the market.
• C)less risk than the market.
• D)cannot tell risk level with Beta.

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Definitions:

Coherence

The property of being a unified whole, with all elements fitting together well.

Rationality

The quality of being based on or in accordance with reason or logic; typically applied in the context of human decision-making processes that are logical, sensible, and based on clear thinking or reason.

Synthetic A Priori

A concept in epistemology that denotes judgments that are derived independently of experience while still providing new knowledge.

Kant

A profound influential philosopher, Immanuel Kant is celebrated for his work in the critique of pure reason and his moral philosophy that emphasizes duty, autonomy, and the moral law.